Importance of Innovation and Commercialisation: A Case Study

This report discusses the importance of innovation and commercialisation in the context of Revolut, a financial technology company. It explores the 4Ps of innovation, the use of the innovation funnel, frugal innovation, the commercial funnel, and new product development. It also evaluates different tools that organizations can use to develop, retain, and protect knowledge and intellectual property.

Innovation
Commercialisation
case study

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Importance of innovation with relation to invention.............................................................3
P2 Importance of organisation mission,vision, leadership, culture and teamwork on innovation
.....................................................................................................................................................4
TASK 2............................................................................................................................................5
P3 Explain the 4Ps of innovation and explain the use of the innovation funnel to examine and
shape innovative ideas.................................................................................................................5
P4 Explain developments in frugal innovation and provide examples of how it is used in an
organisational context.................................................................................................................7
TASK 3............................................................................................................................................7
P5 Importance of the commercial funnel ...................................................................................7
New Product Development (NPD) processing...........................................................................8
P6 Build an Innovation Business Case for an organisation, including ways to access funding.
.....................................................................................................................................................9
TASK 4..........................................................................................................................................10
P7 Evaluate the different tools that organisations can use to develop, retain and protect
knowledge and intellectual property.........................................................................................10
CONCLUSION .............................................................................................................................10
REFERENCES..............................................................................................................................12

INTRODUCTION
Innovation refers as a creation of new values or idea it develop and implement new
products , equipments and technologies. Commercialisation consider as a procedure of bringing
new innovative productive and services at the marketplace. For this project, Revolt company is
chosen. This company is based on financial technologies and headquartered in London. The
purpose of this report is to identify the importance of innovation and invention and determine
how vision, leadership and teamwork help the innovation and identify the 4 P's of innovation and
discuss about the frugal innovation. This project deals with the significance of commercial
funnel and NDP process and also evaluate the various tools to develop and retain the knowledge
of intellectual property.
TASK 1
P1 Importance of innovation with relation to invention
The term invention and innovation are used interchangeably, but both the terms have
varied meaning. The term Innovation refers to the process of creating something new whereas
innovation refers to the fact of restructuring and modifying the process and structure of the
existing thing. The invention is a process of discovering and developing something new from
scratch which have never existed before. Innovation refers to the process of redesigning from the
existing product or service (Ahmadi and O'Cass, 2016). The Revolut is a company which is
engaged in the financial industry. The company is pioneer of innovation that it brings out in its
services and products. The financial sector is tough industry which possess success owing to
continuous innovation and inventions in services. The Revolut started its journey 2015, from
there to till now they have maintained the strong market cap just by offering different products.
As, in this finance industry the products and services being offered are limited and ultimately
same the company attracts the public by just continued experiments in the products offerings
(Dincer, 2017).
The importance of innovation results in the continued growth and success of
organisation. The continuous innovation helps the organisation to differentiate itself from others.
The core products remains same is being offered by everyone in the market the point of
difference lies in the augmented product here it makes the differentiator to company. Therefore,

the continuous innovation embraces in increased goodwill and strong market presence for the
organisation. This way company can have the benefit of competitive advantage also.
P2 Importance of organisation mission,vision, leadership, culture and teamwork on innovation
Revoult Ltd. Is a financial service company with headquarters in UK, founded in 2015.
The company was founded by Nikolay Storonsky and Vlad Yatsenko and offers various banking
and financial services.
Vision
The Revoult's vision statement is to provide the sustainable and new alternatives to
people to ease their financial services. With the continuous innovation only company will be able
to stand on its principle to provide with the different services (Kim, Park and Paik, 2018).
Mission
The company mission principle is to provide the better enhanced services and increase
the financial education in the communities they operate. The Revoult is aiming this with the
continuous and effective changes in the products and services offerings.
Leadership
The company believes in collaborative work practices and to achieve this they use
participative leadership style. The company believes that the company can operate well when
there is continuous growth and development of individuals. Revoult focuses on this by providing
the employees feel of sense of belongingness towards the organisation by taking there opinions
and ideas into consideration.
Culture
The company culture is to have the openness and integrity in workplace. This culture
provides the employees to widen their creativity and innovation space. The company fosters this
culture by working collectively and giving due recognition to everyone in organisation.
Teamwork
The Revoult focus is integrity and honesty in the workspace. The prevail of this principle
in workplace gives the employees space to come up with the new ideas and provides satisfaction
to employees.

By sustaining these organisation values the Revoult achieves its objectives with the innovations
in the offerings and thus providing satisfaction to customer and employees (Lehtimäki, et. al.,
2019).
TASK 2
P3 Explain the 4Ps of innovation and explain the use of the innovation funnel to examine and
shape innovative ideas.
This model was given by Bessant and Tidd which involves 4Ps of innovation. In context
to Revolut, the 4Ps of innovation is discussed below-
 Product- It involves the offering which is being offered to the people. The company
Revolut is launching a technological withdrawal mechanism where it will use thumb
impression for withdrawing money. Process- It involves changes in things which is created. The Revolut company is creating
a mechanism where instead of debit card, it will involve thumb impression of the
customer to withdraw money from the Automatic Teller Machine.
Illustration 1: 4Ps of innovation, 2018

 Position- It involves the target audience of the innovation. The Revolut shall target the
people of every age who are its customers to give them better service which provides
easiness to them to make a withdrawal ( Loya and Rawani, 2016).
 Paradigm- It is concerned with what the company is doing. The Revolut company may
adopt such methods which can bring change in the offering.
Innovation funnel
It is concerned with the steps which are involved for developing the process, service or
product. The company Revolut can make use of innovation funnel in order to bring innovation.
The innovation funnel is discussed below-
 Investigation- It involves collection of idea. The Research and development team of
Revolut shall get involve in bringing and idea after scrutinising the market demand and
needs. Development- Here the scrutinising the idea shall be done and the best idea shall be
selected. The Revolut company is tightening the security for withdrawal of money by
involving thumb impression instead of debit cards (Polzin, von Flotow and Klerkx,
2016).
 Shipping product- It is the last stage where the innovation is launched to the people. It
focuses on failure or success of an innovation. Revolut must come with some marketing
strategy to attract more customers.
Illustration 2: Innovation funnel, 2020

P4 Explain developments in frugal innovation and provide examples of how it is used in an
organisational context.
Frugal innovation involves reduction of cost and the complexity where the non essential
items are removed so that it can sold in low cost. In context to Revolut, frugal innovation is
illustrated below- Principle 1- Engage and Iterate- The company may use website and social media to
conduct effective research so that less time and cost is involved. Principle 2- Flex your assets- The company may get engaged in low cost chips and tools
so that there is less cost involved. Principle 3- Create sustainable solutions- The Revolut may use sustainable resources
like eco friendly papers for the account details or online transfer of details so that
sustainable solution is brought (Szutowski, 2019). Principle 4- Shape customer behaviour- The company must engage in spreading
awareness about the innovation so that people can get to know its advantages.
 Principle 5- Make innovative friends- It involves the collaboration with the government
and suppliers so that offering can be delivered in an easy manner so that large audience is
attracted.
TASK 3
P5 Importance of the commercial funnel
Commercial funnel
It is considered as a marketing term that lead the process in which customers usually go
through this for purchase purpose. The main importance of this commercial funnel is to help in
understand about the customers thinking in their purchase journey.
Stages of commercial Funnel Awareness : In this stage, customers become aware about the product. Revolut company
is about to launch a new innovation. Through social media and advertisement, company
spread awareness about the innovative technology. Interest : After the product awareness,customers determine that what the benefits of that
technology on their life and ask everyone to ensure that Revolut company product help to
them or not.

 Decision :When customers are interested in Revolut product then customers try to serach
about the pricing and also packaging and visit some webinars, advertisement pages which
helpful to take decision about purchase.
 Action :After decision stage, customers take action to purchase Revolut product or not. If
customers did not consider the product then company need to start nurture campaign so
that company product stay top on the mind of customers ( Wardle, Baum and Fisher,
2019).
New Product Development (NPD) processing
In order to become successful, company use fast track process for lower risk purpose
with the processing of new product development (NPD). In this process, eight steps considered
which are discussed below- Ideal Generation : Company take suggestions and ideas about to launch new products
and technologies. Idea Screening : After the discussion company choose the best one idea and Revolut take
decision to launch new innovative product that will help the account holders to use their
thumb impression instead of Debit card to withdraw cash at ATM. Development and Testing : Company develop the technology and conduct test to check
its effectiveness. Market Strategy Development : Revolut develop a marketing strategy how to launch this
new innovation. Analysis of Business : Revolute conduct a business analysis to check the attractiveness
of business for their technology. Product Developments :Company start the process of technological development. Test Marketing : Company share their technology with their account holders and tell
them to use it and provide their review.
 Commercialisation : After successful test marketing, company promote their technology
through social media, TV, radio and other online platforms.

P6 Build an Innovation Business Case for an organisation, including ways to access funding.
The company Revolut deals with all the bank financial system and also with the currency
exchange and funding, this company is coming up with a great idea where they just started a
thumb impression machine through customers will deduct the money.
Steps Description
Summary This business will provide the development of new thumb
impression technique to debit money.
Objectives There goal is to avoid prevent banking frauds.
Mission The main mission of Revolut is to gain trust of customer towards
there bank and keep there money safe.
Vision There vision is advancements of banking sector with new
innovations and technologies.
Innovation in product The innovation by Revolut is they are coming up with a thumb
impression technique which will scan the impression and will help
to debit the money they are removing the use of debit cards for all
banking functions (Yildiz, 2020).
Funding Revolut shall arrange the funds from investors.
Benefits The most important benefit of this innovation is it will reduce the
bank frauds and will also help people to avoid carrying cards on
daily basis.
Monitoring and
controlling
Revolut can use key performance indicator which is going to help
them to set the standard and confidentiality in banking sector.
Sources of Funds
Revolut can use its fund from internal and external sources: Investors: Company can attract the investors for investing in there banks, and in return
can provide them high returns.
 Loans: They can take secured loans in which they will provide interest to the banks.

TASK 4
P7 Evaluate the different tools that organisations can use to develop, retain and protect
knowledge and intellectual property.
Revolut can use different methods in order to develop, retain and protect the intellectual
property rights they are mentioned below:
Patents
It is the right provided to the inventors so that no other person will make or use there
invention this right is given by the government to them and that is for a limited time-period and
can be renewed again. Advantage: It protect there products from infringement.
 Disadvantage: This right is for a limited time period and also quiet expensive.
Trademark
It is a symbol, word, phrase or designs which are used by the company in order to make
its identity different from others. It is for limited time period and the person has the right to file
in a court if someone infringes its trademark ( Žižka, et. al., 2018). Advantages: This helps in securing the right of the company and this makes the goodwill
of the company.
 Disadvantage: This is an expensive way and is just for certain time period.
Revolut can use Patent to protect there innovation, so that there may not be any
infringement of there innovation.
CONCLUSION
As per this report it is concluded that The main purpose of innovation it to improve the
efficiency, productivity, competitive advantage and most importantly effectiveness.
Commercialisation is like a procedure of transmit of knowledge, ideas , values and a particular
inventions for the growth and wealth. With the help of commercial funnel stages company easily
aware about the thinking of customers on the to their purchase journey. Through Fast track
process, company can maintain the risk. In this report, NDP process help to manage the new
technology innovation process.

REFERENCES
Books and Journals
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Dincer, I., 2017. Importance of research, innovation and commercialisation for technological
success. International Journal of Research, Innovation and Commercialisation, 1(1),
pp.8-22.
Kim, M.K., Park, J.H. and Paik, J.H., 2018. Factors influencing innovation capability of small
and medium-sized enterprises in Korean manufacturing sector: facilitators, barriers and
moderators. International Journal of Technology Management, 76(3-4), pp.214-235.
Lehtimäki, H., et. al., 2019. Sustainable value creation in the commercialisation of innovation:
the case of Auria Biobank. International Journal of Entrepreneurship and Innovation
Management, 23(5), pp.451-465.
Loya, M.I.M. and Rawani, A.M., 2016. Strategic framework for commercialisation of fly ash
innovations. Technology Analysis & Strategic Management, 28(5), pp.555-567.
Polzin, F., von Flotow, P. and Klerkx, L., 2016. Addressing barriers to eco-innovation:
Exploring the finance mobilisation functions of institutional innovation
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Szutowski, D., 2019. Innovation source, advancement stage and company stock returns. The
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Yildiz, I., 2020. Innovation and commercialisation dynamics in agri-food industry under
contemporary forcing functions. International Journal of Research, Innovation and
Commercialisation, 3(1), pp.1-21.
Žižka, M., et. al., 2018. The effect of clusters on the innovation performance of enterprises:
traditional vs new industries.